The Research Of VMI Implementation In DLAR Company

As the supply chain concept has been deeply rooted among the people, more and more companies realize that modern market competition is no longer a competition between individual enterprises, but a competition between the supply chains. Therefore, more supply chain companies begin to seek partners to manage the supply chain. Inventory management is an important part of the supply chain management, and it is also a part that each enterprise focus on. However, there is an normal phenomenon that the enterprise and the departments are always only concern their own business which results in the amplification of the demand variability. The amplification of the demand variability is also called "bullwhip effect", and it leads to the huge inventory in the supply chain and reduce the whole supply chain’s competitive ability. In order to improve the situation and realize the integration of the inventory management in the supply chain, a new inventory manage model-the vendor managed inventory.The producing complexity of the replication equipment manufacturing enterprises determined that it is difficult for its inventory management than the normal enterprise. This research is focus on the application of the VMI mode in the DLAR enterprise which is a replication equipment manufacturing enterprise. First, this research investigated the development and inventory management situation of DLAR, and analyzed the problem of its inventory management and found its reasons, which is based on the theory of supply chain management, inventory management and vendor managed inventory. Secondly, we work out the goals and principles of VMI implementation after analyzing its feasibility by analyzing its VMI suitable conditions. Thirdly, we design the VMI operation plan in the following aspects: operation pattern, operation process, demand forecasts, the set of the inventory level, on time delivery and information transfer, and then we determined the procedure of the VMI implication. Finally, we present some safeguard measures to guarantee the smooth implementation of the VMI operation plan.This research aims to take the DLAR company’s move as an opportunity and offer a new inventory management model for it to help it improve its inventory management and provide reference for similar complex equipment manufacturing enterprise" inventory management.